Low deposit scheme attracting huge interest in South Wales

News that home buyers in South Wales will be able to buy a brand new property with just a five per cent deposit is already attracting enormous interest says leading housebuilder Barratt.

The scheme will help first time buyers as well as those looking to move up the ladder and heralds the welcome return of the 95 per cent mortgage on new homes.

Interest in the scheme, launched by the Welsh Government, is being driven by the dramatically reduced deposit needed to buy a new home, giving creditworthy buyers the best opportunity for five years to get onto the housing ladder or move to a larger home.

Barratt has pledged that its network of mortgage advisers will be available seven days a week so that mortgage applicants can get independent advice and a rapid decision.

Under the scheme the Welsh Government and housebuilders such as Barratt will act as guarantors so that buyers can secure high loan to value mortgages that would not otherwise be available to them.

“This is a game changing moment for creditworthy buyers who have been understandably frustrated for years about not owning a home of their own,’’ said Barratt sales director Richard Lawson.

“I would urge anyone interested to contact us as soon as possible. We will explain how the new system will work and talk our customers through the reduced deposit requirements.

“We have set up a priority service especially for our buyers, using independent mortgage advisers who will ensure their inquiries receive a rapid response.”

Barratt is hailing the return of 95 per cent mortgages as a real boost for the housing market in South Wales and the local economy.

“We believe it will provide the necessary kickstart to the market which has been starved of mortgage finance in the past five years,” said Richard.

"There is an awful lot of pent–up demand. People have been renting for three or four years and many are a bit fed up that they are paying more in rent than if they had bought.

“But the new product is also available to existing homeowners who want to buy a new build home and who only have a five per cent deposit."

Richard added: “The key thing is that people will no longer need huge deposits of up to 20 per cent.

“Even though house prices have fallen since 2007, not everyone has been able to take advantage because of the hefty deposits which lenders have been demanding ever since the credit crunch began.

“In practice that means that you could buy one of our new homes with a deposit of £4,072.’’

For more information about the scheme and about current availability at developments in South Wales, visit barratthomes.co.uk.